Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Chambal Fertilisers & Chemicals Operating Margin % Related Terms
Chambal Fertilisers & Chemicals Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500085 vs CTVA, CF: Operating Margin % Comparison
For the Agricultural Inputs subindustry, Chambal Fertilisers & Chemicals's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chambal Fertilisers & Chemicals Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Chambal Fertilisers & Chemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chambal Fertilisers & Chemicals's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Chambal Fertilisers & Chemicals (BOM:500085) has a Operating Margin % of 5.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chambal Fertilisers & Chemicals and its competitors. This is 47% below median its historical median of 11.20. Over the past decade, Chambal Fertilisers & Chemicals' Operating Margin % has ranged from 5.73 to 17.22. According to the industry distribution chart, Chambal Fertilisers & Chemicals ranks #70 out of 251 companies in the Agriculture industry, placing it in the top 27.9%.
Is Chambal Fertilisers & Chemicals' Operating Margin % too high?
Chambal Fertilisers & Chemicals' current Operating Margin % of 5.92% is 47% below median its 10-year median of 11.20. Over the past 10 years, this metric has ranged from a low of 5.73 to a high of 17.22. The Agriculture industry median Operating Margin % is 6.76. Chambal Fertilisers & Chemicals' value of 5.92% is 12.4% below this industry median. Based on the distribution chart, Chambal Fertilisers & Chemicals ranks #70 out of 251 companies in the Agriculture industry, which is above the industry midpoint. Overall, Chambal Fertilisers & Chemicals has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chambal Fertilisers & Chemicals' Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Chambal Fertilisers & Chemicals ranks #70 out of 251 companies for Operating Margin %. This puts Chambal Fertilisers & Chemicals in the upper half of its industry. The industry median Operating Margin % is 6.76. Chambal Fertilisers & Chemicals' value of 5.92% is 12.4% below this benchmark. Historically, Chambal Fertilisers & Chemicals' own Operating Margin % has ranged from 5.73 to 17.22 over the past decade. While the company's 10-year median is 11.20 vs. the industry median of 6.76, Chambal Fertilisers & Chemicals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Agriculture company?
The median Operating Margin % among Agriculture companies is 6.76, based on 251 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chambal Fertilisers & Chemicals's current Operating Margin % of 5.92% is 12.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Chambal Fertilisers & Chemicals and its competitors. For the Agriculture industry, the median Operating Margin % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chambal Fertilisers & Chemicals's current Operating Margin % is 5.92%, which is 47% below median its own 10-year median of 11.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chambal Fertilisers & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Chambal Fertilisers & Chemicals (BOM:500085) is currently considered Fairly Valued. The stock's GF Value™ is ₹505.29, compared to a current price of ₹468.85 — trading 7.2% below its estimated fair value. The current Operating Margin % is 5.92%, which is 47% below median its 10-year median of 11.20 and 12.4% below the Agriculture industry median of 6.76. Chambal Fertilisers & Chemicals' overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Chambal Fertilisers & Chemicals (BOM:500085), the current Operating Margin % is 5.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chambal Fertilisers & Chemicals (BOM:500085) Overvalued in 2026?
Based on GuruFocus' analysis, Chambal Fertilisers & Chemicals stock appears to be undervalued.
The current stock price of ₹468.85 is trading 7.2% below its estimated GF Value™ of ₹505.29.
GuruFocus considers Chambal Fertilisers & Chemicals to be Fairly Valued.
Key valuation signals for BOM:500085:
Operating Margin %: 5.92% (47% below median its 10-year median of 11.20)
GF Value™: ₹505.29 vs. price of ₹468.85 (7.2% below fair value)
Industry Position: 12.4% below the Agriculture median (#70 of 251)
No single metric tells the full story. See the BOM:500085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chambal Fertilisers & Chemicals Business Description
Chambal Fertilisers & Chemicals Ltd is engaged in the manufacturing of Urea. It also deals in other fertilizers and Agri-inputs and has a joint venture for the manufacturing of Phosphoric Acid in Morocco. The company's reportable segments are; Own Manufactured Fertilisers which generates maximum revenue and includes the manufacturing and marketing of Urea; the Complex Fertilisers segment includes the purchase and sale of DAP, MOP, and various grades of NPK fertilizers; and the Crop Protection Chemicals and Speciality Nutrients segment includes the purchase and sale of Crop Protection Chemicals and Speciality Nutrients such as Insecticides, Herbicides, and Fungicides. Geographically, the company derives its key revenue from India.
83GF Score
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